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Showing posts from April, 2015

Widening Uganda’s tax base: introducing environmental tax

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The non-monetized population of Uganda is about 68%, with a large subsistence economy. Agriculture which is the main stay contributes 14.9% of the GDP, which employs about 80% of the population and yet its contribution to national GDP is almost 0.0%. The agricultural sector contribution to GDP was felt domestically when graduated tax was still levied, but due to its negative impact on income distribution through its steep regressiveness it was abolished (Bahigwa et.al, 2004).
Uganda has a narrow tax base compared to other countries in East Africa, with a stagnation at 13% of the GDP. The tax body has only targeted a small section of the population in formal employment and business, due to easy assessment. With an estimation of the 35 top tax payers accounting for 50% of all the tax revenue collected in the country (Senoga E, Matovu J & Twimukye E, 2009). Tax evasion and corruption in the tax administration has added an insult to injury. In the 1997 it is estimated that 46% of firms…

Young people prospects in Agribusiness: Uganda's demographics

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As we always say that young people are the future of the world and there are the presidents of tomorrow as my class teacher audibly stated it more times than I could remember.  In my view that is 100% true especially when you are from a country like Uganda where over 78% are below 30 years (Uganda Population Report 2012) thus the youngest population in the world. This has created one of the highest dependency ratios in the world which has lead to the vicious cycle of poverty in which many Ugandans are trapped.
Unemployment in Uganda is from 64% to 70% and with a quota of 400,000 youths released to compete for roughly 9,000 jobs.  Semiskilled youths are having a rough time finding jobs as their institutionally qualified counterparts are at 30% certainty of getting one (ACODE, 2014). There is migration of youths from the rural to urban areas for work and this has affected social services in those areas. They have not been lucky in getting those jobs, this has lead to an increase to unem…

Investment vs ban aimed at reducing environmental degradation

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UgandaWith the standing ban on export of forest products within the East African Community, which was aimed at reducing environmental degradation in the region. Busoga Forestry Company is engaged in commercial tree production, with over 65,000 acres in Mayuge and Zombo districts. The poles harvested are used for electricity poles with the off cuts being used for the manufacture of charcoal, showing that the charcoal can be produced commercially without degrading the environment. The standoff is the National Forestry Authority(NFA) issued a licence to export the charcoal but so far Busoga Forestry Company has failed to get an export certificate, where the Minister of  Trade, Industry and Cooperatives Amelia Kyambadde was wondering how that happened with the ban still on. The issue here is the distinction between a byproduct and a product, Busoga Forestry Company is using a byproduct (off cuts) of a legal product (poles) with which they have all the blessing to manufacture by the govern…